Shopify's App Strategy is Fundamentally Flawed
It's been widely reported in the last 6 months that Shopify has been testing local search in its Shop App.
Doesn't this sound similar to the types of things that Google are testing in its Maps app?
It strikes me that Shopify defining itself as "what Amazon is not" is not actually a winning approach. But "they are for entrepreneurs", you say. OK. But what and how is the question?
A few points: - Shopify should give up the "not Amazon" messaging for good and instead define more clearly what and how they are doing for entrepreneurs, and why. It's the "why" part that I still think is missing.
If Amazon is "customer-obsessed", but Shopify is "entrepreneur-obsessed" don't entrepreneurs simply want customers?
- Shopify's App strategy is extremely misguided. It should not be focused on its own app (there is no plan), but if it wanted to do this instead helping its customers create their own apps. Why wouldn't it do this? It would lose control to Apple, oh yeah, and also -- hard to get people to install new apps. Well it's hard to get people to go to new websites too, but they build a large business around this.
Amazon already has a better app than Shop App ever could be -- they will not out-innovate Amazon here because they are setting up too many self-imposed "rules" on themselves to ensure they don't end up like Amazon.
Amazon doesn't have these same rules on themselves, they just want to do what works to drive more sales.
What should Shopify be doing instead? 1 - I'd like to see Shopify giving the highest quality data to Google Maps instead, let Google innovate on the UI and make Shopify the best default checkout for Google before Bolt or Fast beats you there.
2 - I'd like to see Shopify buy a Customer Data Platform, which merchant doesn't need better insights into its own customer base?
3 - I'd like to see more video creation tools integrated into Shopify. If video is the basic form of discovery for creators and fans, Shopify's tool are still non-existent here. Help your creators make better content on Shopify than on other platforms.
This also bypasses the "just setup a #shopify store and buy ads on Facebook" trap the company has found itself in (particularly post-iOS14). Better content = engaged fans = more sales.
